First, the epidemic situation in COVID-19 has spread, and the country's willingness to reserve edible oil strategically has increased. Since April 2020, large state-owned enterprises have been continuously purchasing and storing soybean oil, and it is expected that the purchasing and storing of soybean oil will continue until the second quarter of 20021year.

Second, due to the dry weather at the end of 20 19, the international palm oil production will be insufficient in 2020.

Third, most countries have implemented biodiesel plans well, and the demand for biodiesel has maintained a steady growth.

From the supplier's point of view, because the weather conditions in Southeast Asia are all normal, the output is expected to be continuously repaired, but the reflection range of supply pressure is not too large, which is not very easy to do great harm to the price composition.

In the following May, the year-on-year growth rate of production is likely to narrow to some extent. However, under the current macroeconomic situation and the new bull market of agricultural products, the harm of soybean production in the United States to the vegetable oil fuel sales market is more prominent, resulting in higher demand price elasticity.